Comparing Vornado Realty Trust (NYSE:VNO) and Extra Space Storage (NYSE:EXR)

Vornado Realty Trust (NYSE:VNOGet Rating) and Extra Space Storage (NYSE:EXRGet Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Volatility & Risk

Vornado Realty Trust has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

82.2% of Vornado Realty Trust shares are held by institutional investors. Comparatively, 95.4% of Extra Space Storage shares are held by institutional investors. 7.9% of Vornado Realty Trust shares are held by insiders. Comparatively, 1.5% of Extra Space Storage shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vornado Realty Trust and Extra Space Storage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vornado Realty Trust 11.96% 2.90% 0.90%
Extra Space Storage 50.76% 23.42% 8.39%

Dividends

Vornado Realty Trust pays an annual dividend of $2.12 per share and has a dividend yield of 7.0%. Extra Space Storage pays an annual dividend of $6.00 per share and has a dividend yield of 3.2%. Vornado Realty Trust pays out 326.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage pays out 97.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage has increased its dividend for 14 consecutive years.

Valuation & Earnings

This table compares Vornado Realty Trust and Extra Space Storage’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vornado Realty Trust $1.59 billion 3.63 $176.00 million $0.65 46.31
Extra Space Storage $1.58 billion 16.09 $827.65 million $6.16 30.68

Extra Space Storage has lower revenue, but higher earnings than Vornado Realty Trust. Extra Space Storage is trading at a lower price-to-earnings ratio than Vornado Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Vornado Realty Trust and Extra Space Storage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vornado Realty Trust 3 3 1 0 1.71
Extra Space Storage 1 3 7 0 2.55

Vornado Realty Trust presently has a consensus target price of $33.14, suggesting a potential upside of 10.11%. Extra Space Storage has a consensus target price of $199.30, suggesting a potential upside of 5.44%. Given Vornado Realty Trust’s higher probable upside, analysts plainly believe Vornado Realty Trust is more favorable than Extra Space Storage.

Summary

Extra Space Storage beats Vornado Realty Trust on 11 of the 17 factors compared between the two stocks.

About Vornado Realty Trust

(Get Rating)

Vornado's portfolio is concentrated in the nation's key market New York City along with the premier asset in both Chicago and San Francisco. Vornado is also the real estate industry leader in sustainability policy. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2019. In 2012, Vornado commemorated 50 years on the NYSE.

About Extra Space Storage

(Get Rating)

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1.4 million units and approximately 147.5 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

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